Finance
A conventional conforming loan must:
ABe guaranteed by the federal government
BMeet Fannie Mae and Freddie Mac underwriting guidelines and loan limits✓ Correct
CHave a down payment of at least 20%
DBe used only for primary residences
Explanation
A conventional conforming loan meets the underwriting guidelines and loan limits set by Fannie Mae (FNMA) and Freddie Mac (FHLMC), allowing it to be sold on the secondary mortgage market. Conforming loan limits are adjusted annually.
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